The Potential of Small and Medium Entreprises in Belarus
The private sector in Belarus produces only 25% of national GDP despite employing 47% of all employees in the domestic economy. The potential for the development of the private sector in Belarus in terms of productivity and share of GDP is great. Small and medium-sized enterprises (SMEs) can become a leading force in acheiving that potential. Yet according to a recent joint-study undertaken by researchers from CASE - Center for Social and Economic Research and the IPM Research Center in Belarus, SME owners in Belarus do not take out any loans and do not perceive a lack of credit as a substantial obstacle to their development. Why not? Is this because of the practice left over from Soviet times of financing one’s own business with cash? Or is it due to a limited amount of credit available in the Belarusian financial market?
To read more on this topic see: Naurodski, S. „The Role of Credit in the Development of Small and Mediumsized Entreprises in Belarus: Estimating the state of the Microfinance Sector”